Amphenol Earnings Rise

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Amphenol

(APH) - Get Report

surged 13% Wednesday after posting a 21 rise in first quarter earnings.

The Wallingford, Conn.-based company earned $57.3 million, or 63 cents a share, in the quarter, compared with $46.4 million, or 52 cents a share, a year ago. Analysts polled by Thomson First Call were expecting earnings of 59 cents a share in the most recent quarter.

Sales in the latest quarter rose 39% to $569 million as against analysts' expectation of $541.9 million.

The company expects to earn 66 cents a share to 68 cents a share on revenue of $580 million to $590 million for its second quarter. It raised its annual guidance to $2.64 a share to $2.72 a share on revenue of $2.3 billion to $2.35 billion. Earlier, Amphenol was expecting earnings of $2.56 a share to $2.63 a share on revenue of $2.25 billion to $2.3 billion. Analysts estimate stands at 64 cents a share on revenue of $568.3 million for the second quarter and $2.63 a share on revenue of $2.28 billion for full year.

Excluding the effect of TCS acquisition and stock option expense, operating profit margin improved 20 basis points to 19.1%.

The gain was driven by improved profitability of the interconnect product segment offset in part by lower cable product margins, which continue to be hurt by increasing material and freight related costs.

Sales in interconnect products segment, which represents 89% of the total company sales, rose 41% to $509.1 million. The cable products segment, which is primarily for broadband cable television networks and accounts for 11% of the sales, saw sales rise 24.2% to $59.9 million.

The company's acquisition, TCS, contributed $94 million to revenue and 3 cents a share to earnings.

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